Recommendations & Conclusions
8 items
4
Recommendation
57th Report - Government services: Gene…
Accepted in Part
Charging bodies do not publish adequate or consistent information on their fees and charges to allow for effective public scrutiny and accountability. The Treasury sets out in both Managing Public Money (MPM) and the Financial Reporting Manual (FReM) the information departments must disclose on fees and charges in their annual …
Government response. The government disagrees with the specific recommendation for standardised reporting but commits to updating the Financial Reporting Manual (FReM) by Spring 2026 with clearer reporting guidance for fee-charging public bodies. They will also consider if further reporting requirements are necessary.
HM Treasury
9
Recommendation
57th Report - Government services: Gene…
Accepted in Part
The NAO reported that of the seven services examined, six aimed to achieve 100% cost-recovery, but these six averaged only 88% recovery in 2023-24, leading to a shortfall of £340 million.16 The Treasury acknowledged that it has perhaps been too passive, relying primarily on accounting officers. Treasury accepted that it …
Government response. The government disagrees with the specific recommendation. However, the Treasury will update the Financial Reporting Manual (FReM) to align to 6.11 of Managing Public Money (MPM) to include clearer reporting guidance for fee-charging public bodies and will embed oversight through …
HM Treasury
13
Conclusion
57th Report - Government services: Gene…
Accepted in Part
The Treasury told us it manages its fees and charges through periodic spending reviews (typically every two years) and expects accounting officers to follow its guidance. The Treasury described the spending review as a mechanism for departments to assess their cost base and funding needs, including their approach to fees …
Government response. The government disagrees with the recommendation but will update the Financial Reporting Manual (FReM) to align to Managing Public Money (MPM) to include clearer reporting guidance for fee-charging public bodies and embed oversight through the Spending Review returns every two …
HM Treasury
18
Recommendation
57th Report - Government services: Gene…
Accepted in Part
The Treasury requires departments to disclose information on their fees and charges in their annual reports and accounts, as set out in MPM and the Financial Reporting Manual (FreM). However, the Treasury noted there are inconsistencies between these documents. This has created ambiguity about what departments must report and at …
Government response. The Treasury will update the Financial Reporting Manual (FReM) to align to 6.11 of Managing Public Money (MPM) by Spring 2026 to include clearer reporting guidance for fee-charging public bodies. They will also keep this under review and consider if …
HM Treasury
19
Recommendation
57th Report - Government services: Gene…
Accepted in Part
Poor reporting limits the Treasury and Parliament’s ability to monitor fees and hold departments to account. The NAO found that none of the seven services it examined complied fully with all of the Treasury’s disclosure requirements in their respective 2023-24 annual report and accounts.37 Accounting officers are responsible for ensuring …
Government response. The Treasury will update the Financial Reporting Manual (FReM) to align to 6.11 of Managing Public Money (MPM) by Spring 2026 to include clearer reporting guidance for fee-charging public bodies. They will also keep this under review and consider if …
HM Treasury
3
Recommendation
58th Report - Government services: Iden…
Accepted in Part
Legacy IT systems are a significant contributory factor in the cost of government services and an impediment to being able to gather better data to bring about improvements. Departments face major challenges in collecting and analysing cost data due to legacy IT systems and siloed data structures. These outdated systems …
Government response. The government accepts part of the recommendation, agreeing to share available legacy system data with the Committee chair by March 2026 (privately). However, it rejects the second part, stating it will not prioritize identifying specific systems for further cost investigation …
HM Treasury
13
Recommendation
58th Report - Government services: Iden…
Accepted in Part
Legacy systems are problematic for two main reasons. Firstly, they are a significant driver of cost, comprising around one-third of government’s technology estate but representing almost half of its costs.30 This may not include the excess costs that arise from people having to work manually around cumbersome, old systems and …
Government response. DSIT will share the available data with the chair of the Committee by March 2026, however, the department does not agree that this recommendation should be an immediate priority of the next 6 months.
HM Treasury
18
Recommendation
58th Report - Government services: Iden…
Accepted in Part
The SSO role is not well understood across departments compared to other senior roles in departments. Both Cabinet Office and DSIT told us that more can and should be done to raise its profile and ensure that an SSO is appointed for “every single service”.45 It is important to ensure …
Government response. The Government Digital Service and the Cabinet Office will issue a letter encouraging Permanent Secretaries to complete an assessment of all SSO gaps within 6 months, and to appoint SSOs within 12 months, but the implementation target is March 2027, …
HM Treasury